Owning your very own company can be an exciting way to offer different products and services to your customers. If done properly, the business can even bring in quite a bit of revenue for you and surpass what you’d be able to make on your own working for another employer. However, having your own enterprise opens you up to costs you can’t ignore, not to mention a world of possible problems. In some cases, a client or worker can get hurt while on the property or using your products, leaving you vulnerable to a future lawsuit if you aren’t protected fully.
Be Wary of Everything You Say or Guarantee
Making false claims and guarantees can eventually be detrimental to your business. Let’s say that you offer some type of product and guarantee that it’ll last a lifetime, but when it breaks for a customer and you don’t offer to replace it, you’ll be in some hot water. Never guarantee anything that you wouldn’t be able to back up at some point in the future. Be careful how you speak to your clients, and always take a professional approach when addressing concerns.
Keep a Clean, Orderly Environment
If someone were to get hurt when on the property, you could be held liable for their medical bills and fees. This goes for both clients as well as employees. It is essential that you keep a safe working environment, and clean and orderly at all times. Put out caution signs when mopping floors, make clients aware when a step is present when walking around and always abide by OSHA policies when providing a work environment for employees.
Work with Your Employees
Your workers need access to a quality HR department that they can utilize if there is ever a problem. The HR department allows workers to have different cases handled associated with sexual harassment, rights, and wages. You should avoid promising different incentives to your workers that you wouldn’t be able to back up, like promotions, raises, and bonuses.
Have the Right Protection
Having the proper business insurance is so important and can be helpful in the event that someone sues your company. Unfortunately, you never know when a disgruntled client or employee will work with their attorney to bring a lawsuit against you. This can be incredibly problematic for your business and could lead to its eventual collapse. Insurance protects you from these problems by offering money if you need to go to court. Working with the right attorney can also be helpful when dealing with legal events.
Keep Your Assets Separated from the Company
While some entrepreneurs act as sole proprietors, this can be an issue if you ever get sued by a client or employee. The reason for this is because your own personal assets, like your house or car, are tied into the legal aspects of the business. You can lose everything simply because you’re being sued by someone and don’t have the right insurance protection. By separating your assets from the company, this is less likely to happen and you can avoid the problems that come with being a sole proprietor.